Protected Health Information & HIPAA

This question asks if your software will handle any health-related information that's protected by HIPAA laws. Protected Health Information (PHI) includes any health data that could identify a patient - medical records, insurance information, lab results, or even appointment schedules with names attached. HIPAA is a federal law with serious teeth, and if your solution touches this type of data, you'll need to meet strict security and privacy standards. This applies even if you're not a healthcare company yourself but serve healthcare clients.

HIPAA compliance opens doors to the massive healthcare market but comes with significant responsibilities. You'll need to sign Business Associate Agreements (BAAs), implement extensive security controls, conduct regular risk assessments, and maintain detailed audit logs. Non-compliance penalties range from $100 to $50,000 per violation, with annual maximums reaching $1.5 million. However, HIPAA compliance can be a major differentiator, allowing you to serve hospitals, clinics, and health tech companies that desperately need modern solutions. The healthcare market's digital transformation represents billions in opportunity for compliant SaaS providers.

Many companies don't realize that even seemingly innocent data can be PHI - employee wellness program data, student health records, or even fitness app data linked to identities. Another critical mistake is thinking HIPAA doesn't apply because you're not a healthcare provider. If healthcare clients use your service for any health-related purpose, you likely need HIPAA compliance. Companies also underestimate the ongoing burden - HIPAA isn't a one-time certification but requires continuous monitoring, training, and documentation.